Reasons Why You May Need to File for a Tax Extension
Amherst, NH Resident Begins to Worry
In many situations filing for a tax extension is a very smart move, particularly with the April tax deadline looming. It is important that your tax return be complete and error-free. Tax filers that need more time to prepare the documents and gather their numbers may find it advantageous to file an extension rather than scrambling at the last minute to piece everything together, putting themselves at risk for making an error. This is particularly true if you want to seek the advice of a tax professional. Giving yourself, and your tax preparer more time, can make sure your paperwork is filed properly.
An Amherst resident was beginning to feel the pressure of the tax deadline. Finding her situation overwhelming, she contacted Merrimack Tax Associates for advice on how to proceed.
Life Events Can Necessitate a Tax Extension
When you hit a bump in the road, whether an illness, divorce, death of a loved one, or some other life changing event, it can be difficult to think about anything else. The last thing that you want to add to your plate is gathering tax documents and preparing your return. While a professional can help to get this done for you, if the paperwork isn’t immediately available a tax extension may be an excellent course of action. This will allow you the time to get through your current situation before you address your tax return.
Maximizing Retirement Contributions with an Extension
Filing for a tax extension can give you the time you need to gather some cash to fund retirement accounts. This can allow you to maximize these contributions for the year, offering big tax savings by lowering taxable income and tax liability. Taking the additional time to gather these funds can save you money by reducing the amount of taxes that you pay.
Deadline for Filing a Tax Extension and What to Do Next
If you plan to file for a tax extension, this must be done on or before the April tax deadline. You will then have until October 15th to file your taxes without the risk of a penalty from the IRS.
The Amherst resident was pleased to hear that she had options. With the help of the team at Merrimack Tax Associates, she was able to file for a tax extension and can now take the extra time she needs to collect her paperwork.